This study aims to examine the impact of global financial crisis and the resulting bailin on audit fees of Cypriot banks as a result of increased audit risks. It is investigated by examining audit fees charged to Cypriot banks during three sample periods: Pre-global financial crisis (2000-2007), post global financial crisis (2008-2012) and during bail-in period (2013-2015). This study includes a quantitative research design, including an audit fee regression model to examine the impact of global financial crisis and resulting bail-in on audit fees. The results reveal that auditors charged higher audit fees after the crisis period compared to pre-crisis period and a larger and more significant increase in audit fees continued during the bail-in period. This study also provides additional test carried out on controlling the connection of Cypriot banks with Greece and supplementary tests on the robustness of the model.
pre-global financial crisis, post-global financial crisis, bail-in, audit fees, Cypriot banks
Copyright: © University of Nicosia, Cyprus
All rights reserved.
No restrictions on photo-copying.
Quotations from The Cyprus Review are welcome, but acknowledgement of the source must be given.